Intel Beware: A Chipmaker's New Product Launch Could Steak Market Share Across The Industry

  • KeyBanc analyst John Vinh attended Lattice Semiconductor Corp's LSCC launch event for its mid-range FPGA (Avant), based on Taiwan Semiconductor Manufacturing Company Ltd TSM 16nm FinFET process technology.
  • The technology will likely target low-power edge applications with enhanced capabilities in AI inferencing.
  • The analyst noted that compared to the prior generation Nexus, Avant provides up to 5x higher capacity, 10x more bandwidth, and 30x faster performance. 
  • Against competitors like Intel Corp INTC Arria V GZ and Advanced Micro Devices, Inc AMD Kintex-7, management showed a few live demos, highlighting up to 2x faster performance and 2.5x better power efficiency. 
  • The management eyed two more Avant platforms in 2023 and more from 2024 and beyond while continuing to introduce new Nexus platforms in 2023.
  • LSCC also unveiled the first platform, Avant-E, and is planning to roll out more in 2024 while continuing to expand Nexus offerings. 
  • The management reiterated a 10 to 20 times price uplift vs. the current blended ASPs and expected the revenue ramp of Avant to be similar to that of Nexus. It expects initial revenue toward the end of 2023 and will materialize from 2024 and beyond. 
  • The analyst saw Avant's introduction and performance uplift as positive for LSCC as it will likely double the Serviceable Addressable Market (SAM) to $6 billion with accretive margins and positions the Company well to sustain continued share gains from INTC, Altair Engineering Inc ALTR and Xilinx, Inc. 
  • Price Action: LSCC shares traded lower by 2.02% at $68.48 on the last check Tuesday.
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